FX.co ★ Technical analysis of EUR/USD for January 16, 2017

Overview:

• The EUR/USD pair faced resistance at the level of 1.0684, while minor resistance is seen at 1.0643. Support is found at the levels of 1.0512 and 1.0471 in the H1 time frame at the moment. Besides, it should be noted that a weekly pivot point has already seen at the level of 1.0512. Equally important, the EUR/USD pair is still moving around the key level at 1.0595. Last week, the pair dropped from the level of 1.0684 to 1.0595, Today, resistance is seen at the levels of 1.0684 and 1.0643. So, we expect the price to set below the strong resistance at the levels of 1.0684 and 1.0643; because the price is in a bearish channel now. Amid the previous events, the price is still moving between the levels of 1.0643 and 1.0512. In overall, we still prefer the bearish scenario as long as the price is below the level of 1.0643. Furthermore, if the EUR/USD pair is able to break weekly pivot at 1.0512, the market will decline further to 1.0471 (weekly support 2 is seen at 1.0379). Hence, the price will fall into a bearish trend in order to go further towards the strong support at 1.0379 to test it again. The level of 1.0339 will form a double bottom. On the other hand, if the price closes above the strong resistance of 1.0643, the best location for a stop loss order is seen above 1.0690.